Last Updated on September 15, 2025 by Admin
Table of Contents
What’s new in September 2025 (quick read)
- India moves to a two-slab structure: 5% and 18% (12%/28% pruned).
- Cement (HSN 2523) drops to 18%; marble/travertine & granite blocks to 5%; sand-lime bricks/stone inlay work to 5%.
- Works contract (Govt. predominantly earthwork & offshore O&G) moves to 18%. Job-work for bricks/pharma/leather/printing/umbrellas to 5% (with ITC = Input Tax Credit); residual job-work now 18%.
Always verify your exact HSN/SAC and scope with the final CBIC notifications linked below.
Construction Services (SAC)
Works contract – general construction/repair/renovation
- SAC: 9954
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- ITC: With ITC
- Notes: Default entry under Notification 11/2017 (as amended).
Works contract – predominantly earthwork (>75%) provided to the Government
- SAC: 9954
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 18%
- ITC: With ITC
- Notes: As per the GST Council 56th meeting decisions, Government earthwork is aligned to 18%.
Sub-contractor supplying to the above Government earthwork contract
- SAC: 9954
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 18%
- ITC: With ITC
- Notes: Parity with the main contractor from September 22, 2025.
Works contract – offshore oil & gas exploration and production in offshore area
- SAC: 9954
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 18%
- ITC: With ITC
- Notes: Rationalised to 18%.
Residential apartments – Affordable (2019 scheme)
- SAC: 9954
- Rate (till Sep 21, 2025): 1%
- Rate (from Sep 22, 2025): 1% (no change)
- ITC: No ITC
- Notes: Affordable definition and 80% registered procurement rule apply (RCM on shortfall).
Residential apartments – Other than affordable (2019 scheme)
- SAC: 9954
- Rate (till Sep 21, 2025): 5%
- Rate (from Sep 22, 2025): 5% (no change)
- ITC: No ITC
- Notes: New rate scheme continues.
Commercial apartments in RREP (with ≤15% commercial area)
- SAC: 9954
- Rate (till Sep 21, 2025): 5%
- Rate (from Sep 22, 2025): 5% (no change)
- ITC: No ITC
- Notes: RREP-specific entry under the 2019 scheme.
Commercial apartments (non-RREP)
- SAC: 9954
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 12%*
- ITC: With ITC
- Notes: *No explicit GST Council change was notified in the press release; check the final CBIC notification.
Job-work in relation to bricks
- SAC: 9988
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 5%
- ITC: With ITC
- Notes: Concessional job-work rate applicable from September 22, 2025.
Real-estate scheme essentials (still applicable): Under the 1%/5% residential scheme, ITC is unavailable; promoters must procure ≥80% from registered suppliers. Shortfall attracts RCM @ the applicable rate (e.g., cement post-Sep 22 at 18%).
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Construction Materials (Goods – HSN)
Cement (Portland, aluminous, slag, supersulphate, clinkers)
- HSN: 2523
- Rate (till Sep 21, 2025): 28%
- Rate (from Sep 22, 2025): 18%
- Notes: Headline rationalisation cut.
Marble/travertine blocks; Granite blocks
- HSN: 2515 / 2516
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 5%
- Notes: Applies to blocks only (not polished slabs or tiles).
Sand-lime bricks / Stone inlay work
- HSN: 6805 / 6815 (selected)
- Rate (till Sep 21, 2025): 12%
- Rate (from Sep 22, 2025): 5%
- Notes: Specified entries rationalised.
Natural sand
- HSN: 2505
- Rate (till Sep 21, 2025): 5%
- Rate (from Sep 22, 2025): 5% (no change)
- Notes: Common construction sand.
Aggregates (pebbles, gravel, crushed stone, macadam)
- HSN: 2517
- Rate (till Sep 21, 2025): 5%
- Rate (from Sep 22, 2025): 5% (no change)
- Notes: Covers concrete, road metal, and ballast.
Ready-Mix Concrete (RMC)
- HSN: 38245010
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: Non-refractory mortars and concretes.
Ceramic/vitrified tiles
- HSN: 6907 / 6908
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: Includes glazed and unglazed floor and wall tiles.
Sanitaryware (ceramic)
- HSN: 6910
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: WC pans, cisterns, basins, and similar sanitary items.
Iron & Steel (Chapter 72) — plates, coils, bars, TMT, etc.
- HSN: 7206–7215 (typical)
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: Standard rate for most items under Chapter 72.
Articles of iron/steel (Chapter 73) — pipes, fabricated items
- HSN: 73xx
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: Covers typical construction-use articles.
PVC/CPVC/UPVC pipes & fittings
- HSN: 3917
- Rate (till Sep 21, 2025): 18%
- Rate (from Sep 22, 2025): 18% (no change)
- Notes: Plastic pipes and fittings.
Transition & Compliance Checklist (Sep 2025)
- Time of supply: Apply revised rates on supplies made on/after Sep 22, 2025; use current rates before that date.
- Contracts & POs: Add a “taxes as applicable on the date of supply” clause; issue change orders where rates shift.
- RCM (real-estate scheme): 80% registered purchase rule continues; pay RCM on shortfall. Cement under RCM becomes 18% from Sep 22.
- ERP update: Map new rates for HSN 2523, 2515/2516 blocks, 6805/6815 items, and job-work SAC 9988 entries.
- Advance receipts: Re-compute differential tax if supply crosses the changeover date; issue credit/debit notes as needed.
Related Posts:
- Real Estate Jobs and Career Opportunities in India
- Enhancing Efficiency: The Importance of Goods Lifts in Construction
- Top 5 Construction Niches Poised for Maximum Job Creation in India (2025–2030)
- 30 Leading Data Center Construction Contractors & EPCs in India and APAC
FAQs
When exactly do the new rates apply?
From September 22, 2025, for goods and services (except tobacco/pan masala/cigarettes, which shift later on a separate notification).
Did residential 1%/5% rates change?
No. The 2019 scheme for residential projects (1% affordable; 5% other) with no ITC continues. The 80% procurement rule and RCM on shortfall still apply.
What about commercial apartments (non-RREP) at 12%?
As of this update, the Council’s press release does not explicitly revise that entry. Continue with 12% (with ITC) unless CBIC notifies otherwise.
Official Sources
- PIB: Recommendations of the 56th GST Council Meeting (effective dates)
- GST Council: Annexures with detailed goods & services rate changes (incl. works contract & job-work)
- PIB Brief: “GST Reforms 2025” (sector snapshots; cement, blocks, sand-lime bricks)
- CBIC/GST Council FAQ (Real Estate 2019 scheme: 1%/5%, 80% rule, RCM)
- CBIC schedules: Goods & Services GST rates (for baseline HSNs like 2505 sand, etc.)
Disclaimer: This is a practical cheat-sheet. Always verify your exact HSN/SAC and project conditions against the latest CBIC notifications and state circulars.
